Bankruptcy Law

Japan’s Stimulus Holds Bankruptcies to 30-Year Low in 2020

Jan. 13, 2021, 6:08 AM

Japanese bankruptcies fell to the lowest level in 30 years in 2020, as government support helped prop up businesses amid the pandemic.

Bankruptcy cases fell 7.3% compared with the previous year to 7,773, the lowest since 1990, data from credit analysis firm Tokyo Shoko Research showed Wednesday. Some 792 of the companies that failed said the coronavirus was the main factor.

The surprisingly low number of bankruptcies reflect the government’s success in using billions of dollars worth of loan programs and subsidies to keep firms alive. The risk is that more businesses could start to go under once support...

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